Stanley Electric Co (6923) AI Stock Analysis

• Market Cap: ¥431.48B
• Dividend Yield: 2.88%
• Average Volume (3M): 654.85K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.70
• Revenue Growth: 4.86%
• EPS Growth: 10.95%
• Country: JP
• Employees: 16,778
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 82.71
• Shares Outstanding: 152,000,000
• 10 Day Avg. Volume: 712,470
• 30 Day Avg. Volume: 654,850
• PEG Ratio: 0.51
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 0.86
• P/FCF Ratio: 20.86
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 242.18
• Revenue Forecast (FY): ¥506.28B

• Rating: 78 Outperform
• Price Target: ¥3,486.00 ▲(9.80% Upside)
• Action: Reiterated Date: 10/23/25
• Date: Action: Reiterated 10/23/25

Stanley Electric Co's strong financial performance is the most significant factor, supported by solid technical indicators and a fair valuation. The company's robust financial health and positive market momentum contribute to a favorable stock score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Stanley Electric's products, enhancing its competitive position and market share.

Profitability Margins

Improved profitability margins reflect effective cost management and pricing power, contributing to sustainable financial performance.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability and provides flexibility for future investments and growth.

Negative Factors

Free Cash Flow Decline

A significant decline in free cash flow may indicate potential liquidity challenges, affecting the company's ability to fund operations and growth initiatives.

Liquidity Management

Challenges in liquidity management could constrain operational flexibility and limit the company's ability to respond to market opportunities or disruptions.

Operational Cash Flow

While operational cash flow is robust, the decline in free cash flow suggests that capital expenditures or other cash uses may be straining liquidity.

Stanley Electric Co Business Overview & Revenue Model

Company Description

Stanley Electric Co., Ltd., together with its subsidiaries, manufacture, sells, and import/export of automotive and other light bulbs. It operates through Automotive Equipment, Electronic Components, and Applied Electronic Products segments. The Automotive Equipment Business segment offers LED, HID, and halogen headlamps; rear combination, turn signal, and fog lamps; and automotive LED and light bulbs, etc. The Electronic Components Business segment provides ultraviolet (UV), visible light, and infrared LEDs; optical sensors, liquid crystal display (LCD) devices, and UV cold cathode lamps; and sub miniature lamps, etc. The Applied Electronic Products Business segment offers LED lighting for landscape, road, etc.; operating panels; backlighting units for LCDs; flash units for cameras; and sensors for automobiles, etc. The company also offers measuring instruments, medical equipment, and other equipment, as well as develops and sells software. It operates in Japan, the Americas, the Asia-Pacific, China, and internationally. Stanley Electric Co., Ltd. was founded in 1920 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Stanley Electric generates revenue through the sale of automotive lighting products and electronic components. The company primarily earns money by supplying original equipment manufacturers (OEMs) and aftermarket customers with high-quality lighting solutions and electronic devices. Key revenue streams include contracts with major automotive manufacturers for the development and production of custom lighting systems, as well as sales of standard products through distributors and retailers. Strategic partnerships with automotive companies and collaborations in research and development further enhance their market position and contribute to earnings, allowing them to innovate and meet evolving industry standards.

Stanley Electric Co Financial Statement Overview

Summary

Stanley Electric Co exhibits strong financial health with consistent revenue growth and improved profitability margins. The company maintains a solid balance sheet with low leverage and high equity ratios, despite a decline in free cash flow.

Income Statement

Stanley Electric Co shows strong financial performance with consistent revenue growth, evidenced by a revenue increase from 472.4 billion to 509.6 billion yen, marking a growth rate of 7.9%. The gross profit margin improved to 20.7%, and the net profit margin rose to 6.3%, indicating enhanced profitability. Furthermore, the EBIT and EBITDA margins increased to 9.6% and 19.1%, respectively, showcasing strong operational efficiency.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.09, reflecting conservative leverage. An increase in total assets to 749.6 billion yen and a high equity ratio of 64.8% underscore financial stability. Additionally, the return on equity stands at 6.6%, indicating effective management of shareholder investments.

Cash Flow

Stanley Electric Co's cash flow statement demonstrates robust operational cash flow, with a strong operating cash flow to net income ratio of 2.08. However, free cash flow decreased from 38.5 billion to 22.8 billion yen, a decline of 40.7%, suggesting potential challenges in liquidity management. Despite this, the company maintains a healthy free cash flow to net income ratio of 0.71, ensuring adequate cash generation.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	507.96B	509.56B	472.40B	437.79B	382.56B	359.71B
Gross Profit	105.88B	105.67B	82.89B	81.27B	70.88B	74.97B
EBITDA	90.21B	97.13B	72.88B	86.68B	72.18B	71.19B
Net Income	31.39B	32.06B	26.50B	26.50B	21.45B	22.92B
Balance Sheet
Total Assets	741.63B	749.61B	708.26B	629.61B	585.38B	541.02B
Cash, Cash Equivalents and Short-Term Investments	214.54B	219.61B	198.64B	173.41B	150.75B	138.58B
Total Debt	44.45B	44.58B	14.28B	14.17B	12.58B	12.72B
Total Liabilities	154.66B	150.70B	118.90B	93.48B	96.42B	96.37B
Stockholders Equity	479.31B	485.89B	524.80B	476.64B	434.94B	399.63B
Cash Flow
Free Cash Flow	0.00	20.95B	38.45B	40.01B	7.98B	15.45B
Operating Cash Flow	0.00	66.58B	65.55B	76.28B	36.88B	46.64B
Investing Cash Flow	0.00	-64.87B	-31.56B	-56.43B	-20.26B	-41.65B
Financing Cash Flow	0.00	-19.97B	-25.95B	-3.82B	-13.48B	-13.02B

Stanley Electric Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3175.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6923, the sentiment is Positive. The current price of 3175 is above the 20-day moving average (MA) of 3155.90, above the 50-day MA of 3137.72, and above the 200-day MA of 2968.50, indicating a bullish trend. The MACD of 41.48 indicates Negative momentum. The RSI at 70.22 is Negative, neither overbought nor oversold. The STOCH value of 87.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6923.

Stanley Electric Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7244	81 Outperform	¥54.87B	8.84	8.46%	2.64%	-6.35%	18.49%
6923	78 Outperform	¥431.48B	13.36	6.37%	2.88%	4.86%	10.95%
7276	76 Outperform	$796.07B	19.73	7.20%	2.41%	-0.73%	88.36%
7282	75 Outperform	¥595.80B	13.50	8.26%	2.62%	1.44%	-0.92%
5802	72 Outperform	¥8.09T	31.45	8.97%	1.38%	4.96%	8.64%
6902	67 Neutral	¥6.19T	16.31	6.98%	2.98%	2.41%	11.03%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Stanley Electric Co Corporate Events

Stanley Electric Completes ¥80 Billion Share Buyback and Retires 17% of Outstanding Stock

Stanley Electric has completed a large-scale share buyback program and will cancel most of the repurchased shares, significantly reducing its share count. Between July 1, 2025 and January 28, 2026, the company bought back 26,291,800 shares of common stock on the Tokyo Stock Exchange for approximately ¥80 billion, and its board has now approved the retirement of 26 million of those shares—equivalent to 17.10% of shares outstanding before the cancellation—effective February 12, 2026, leaving 126 million shares issued and outstanding and underscoring an aggressive capital return policy that is likely to enhance per-share metrics and shareholder value.

The most recent analyst rating on (JP:6923) stock is a Buy with a Yen3709.00 price target. To see the full list of analyst forecasts on Stanley Electric Co stock, see the JP:6923 Stock Forecast page.

Stanley Electric to Acquire Iwasaki Electric, Expanding Public and Industrial Lighting Reach

Stanley Electric has resolved to acquire all shares of Iwasaki Electric Co., Ltd. from Lux Holdings, L.P., turning the long-established lighting specialist into a consolidated subsidiary. By integrating Iwasaki Electric’s strengths in outdoor and public lighting, its extensive relationships with government and public-sector customers, and its competitive position in industrial light sources and irradiation equipment, Stanley aims to broaden its lighting solutions from automotive into municipal infrastructure, factories, and commercial facilities. The move is intended to accelerate development of next-generation public lighting such as smart streetlights, support the expansion of Stanley’s streetlight business in Japan as well as ASEAN and Indian markets, and enhance growth in its Electronic Component and Applied Electronic Product businesses by leveraging combined technological and market capabilities.

The most recent analyst rating on (JP:6923) stock is a Buy with a Yen3709.00 price target. To see the full list of analyst forecasts on Stanley Electric Co stock, see the JP:6923 Stock Forecast page.

Stanley Electric Posts Modest Sales Growth but Profit Hit by Tariffs and Chip Shortages

Stanley Electric reported net sales of ¥380.28 billion for the nine months ended December 31, 2025, a 1.2% year-on-year increase, while operating income fell 13.2% to ¥28.58 billion, pressured by U.S. tariffs, semiconductor shortages and other external headwinds. Robust performance in the Asia-Pacific two-wheel vehicle segment helped support revenue, and although sales in China declined amid a challenging operating environment, profitability improved there through rationalization efforts, signaling a strategic focus on margin enhancement and operational efficiency despite uneven regional demand.

The most recent analyst rating on (JP:6923) stock is a Buy with a Yen3709.00 price target. To see the full list of analyst forecasts on Stanley Electric Co stock, see the JP:6923 Stock Forecast page.

Stanley Electric Lifts EPS and Dividends Despite Lower Profit Margin Outlook

Stanley Electric reported a modest 1.2% increase in net sales to ¥380.3 billion for the nine months ended December 31, 2025, but saw operating profit fall 13.2% and ordinary profit drop 8.9%, even as profit attributable to owners of parent rose 12.6% due largely to share count effects, lifting basic earnings per share to ¥152.08. The company’s equity ratio declined from 64.8% to 57.1% amid a sharp increase in treasury shares, while it maintained full-year guidance calling for slightly lower sales and profits year on year and confirmed a significantly higher annual dividend forecast of ¥100 per share, signaling continued shareholder returns despite expectations of a mild earnings contraction.

The most recent analyst rating on (JP:6923) stock is a Buy with a Yen3709.00 price target. To see the full list of analyst forecasts on Stanley Electric Co stock, see the JP:6923 Stock Forecast page.

Stanley Electric Nears Completion of Large-Scale Share Buyback Program

Stanley Electric Co., Ltd. has reported the latest progress on its share buyback program authorized by its board in June 2025, executing the purchase of 1,819,400 shares of its common stock for approximately ¥5.6 billion between December 1 and December 31, 2025 via market transactions on the Tokyo Stock Exchange, including ToSTNeT-3 off-auction repurchases. Under the broader program allowing repurchases of up to 35 million shares or ¥80 billion through March 31, 2026, the company has cumulatively bought back 24,578,600 shares for about ¥74.6 billion by the end of December 2025, signaling an aggressive capital allocation stance that reduces the free float, may enhance earnings per share, and underscores management’s confidence in the company’s valuation and shareholder-return policy.

The most recent analyst rating on (JP:6923) stock is a Buy with a Yen3486.00 price target. To see the full list of analyst forecasts on Stanley Electric Co stock, see the JP:6923 Stock Forecast page.

Stanley Electric and Mitsubishi Electric Mobility Delay Effective Date of Lamp Systems Joint Venture Split

Stanley Electric and Mitsubishi Electric Mobility have postponed the effective dates for the absorption-type company split that will establish their joint venture for next-generation vehicle lamp systems, shifting the schedule from early January 2026 to March 30–31, 2026. The companies said additional time is needed to complete operational preparations and required procedures to ensure a smooth launch of the integrated business, and they plan to disclose any impact on their financial performance once it becomes clear, signaling that the strategic integration remains on track but with a revised timeline for execution.

The most recent analyst rating on (JP:6923) stock is a Buy with a Yen3486.00 price target. To see the full list of analyst forecasts on Stanley Electric Co stock, see the JP:6923 Stock Forecast page.

Stanley Electric Announces Treasury Stock Purchase

Stanley Electric Co., Ltd. announced the purchase of 1,944,600 shares of its common stock for a total of 5,937,476,400 yen during November 2025. This move is part of a broader strategy authorized by the Board of Directors to repurchase up to 35,000,000 shares, aiming to enhance shareholder value and optimize capital structure.

The most recent analyst rating on (JP:6923) stock is a Buy with a Yen3486.00 price target. To see the full list of analyst forecasts on Stanley Electric Co stock, see the JP:6923 Stock Forecast page.